NIM23550 - Class 2 National Insurance contributions: Entitlement to pay voluntarily: Payment methods

Regulation 89 and 90 of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004) as amended by regulation 1(2) and 6 of the Social Security Contributions (Amendment No. 3) Regulations 2011 (SI 2011 No 797)

NIM23501 explains who could pay Class 2 National Insurance contributions (NICs) voluntarily.

Direct debit

Both those persons excepted from liability and those persons entitled to pay Class 2 NICs for periods whilst working abroad, whether employed or self-employed, could pay by direct debit (DD) in the same way as those who were liable to pay Class 2 NICs. Class 2 NICs for tax year 2011 to 2012 and later years could be paid either monthly or six monthly by DD, see NIM20251.

Payment requests issued six monthly

If persons granted Small Earnings Exception (SEE) from liability to pay Class 2 NICs (see NIM21000), told HMRC that they wanted to pay Class 2 NICs voluntarily but they did not want to pay by DD, they could ask HMRC to send them six monthly payment requests. These were issued at the same time and in the same format as six monthly payment requests issued to those liable to pay Class 2 NICs. Self Employment Services in HMRC’s National Insurance Contributions and Employer Office (NIC&EO) dealt with such requests.

In years which consist of 53 contribution weeks, the payment request issued in April following the end of the contribution year for which the person was entitled to pay Class 2 NICs could cover up to 27 weeks. If a person was not liable to pay Class 1 or Class 2 NICs in respect of that contribution year and 52 weeks of Class 2 NICs were needed to make the year a qualifying year for Basic State Pension, then the person entitled to pay only needed to pay for 52 weeks, despite the fact that the contribution year consists of 53 contribution weeks.

Persons entitled to pay Class 2 NICs for periods whilst working abroad would not be issued with six monthly payment requests. Their requests to pay were processed by International Caseworker in HMRC’s National Insurance Contributions and Employer Office. See NIM33600 for more guidance.

Other payment methods

Where a person did not choose to pay Class 2 NICs voluntarily by DD or in response to six monthly payment requests (where such provision was made), they could ask HMRC what Class 2 NICs they could pay for a past period they were entitled, but not liable to pay.

Persons who wanted to pay Class 2 NICs for periods covered by SEE, should have contacted Self Employment Services in HMRC’s National Insurance Contributions and Employer Office (NIC&EO). Persons who wanted to pay Class 2 NICs for periods whilst working abroad, whether employed or self-employed, should have contacted International Caseworker in HMRC’s NIC&EO.